Green Certification and Its Impact on Hotel Marketability and Profitability
DOI:
https://doi.org/10.47941/jmh.1959Keywords:
Green Certification, Hotel Marketability, Hotel Profitability, Sustainability Practices, Operational Cost Savings, Eco-Friendly Accommodations, Energy EfficiencyAbstract
Purpose: The general objective of this study was to analyze the benefits and challenges of obtaining green certifications for hotels.
Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive's time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library.
Findings: The findings reveal that there exists a contextual and methodological gap relating to green certification and its impact on hotel marketability and profitability. Preliminary empirical review revealed that green certification significantly enhanced hotel marketability and profitability. Green-certified hotels attracted more environmentally conscious consumers, resulting in higher occupancy rates and increased customer loyalty. Additionally, these certifications led to substantial operational cost savings in areas such as energy and water use, and allowed hotels to command premium pricing. Overall, the findings demonstrated that adopting sustainable practices through green certification provided both environmental and economic benefits, positioning hotels for better success in the competitive market.
Unique Contribution to Theory, Practice and Policy: The Institutional Theory, Resource-Based View (RBV) and Signaling Theory may be used to anchor future studies on green certification and its impact on hotel marketability and profitability. The study recommended that hotels pursue green certifications to enhance marketability and profitability, emphasizing their importance as strategic investments. It highlighted the theoretical relevance of Institutional Theory and the Resource-Based View (RBV), suggesting further research into normative pressures and specific resources. Practically, it advised hotels to adopt and communicate sustainable practices, engage guests in sustainability initiatives, and provide staff training. For policymakers, it recommended supportive policies, incentives, and public awareness campaigns. The study also encouraged future research into the long-term financial impacts of green certification and the role of technology in sustainability efforts.
Keywords: Green Certification, Hotel Marketability, Hotel Profitability, Sustainability Practices, Operational Cost Savings, Eco-Friendly Accommodations, Energy Efficiency
Downloads
References
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1),
-120. doi:10.1177/014920639101700108
Bentes, M. V., & Moreira, M. R. (2014). Sustainable practices and hotel profitability in Brazil. Tourism
Review International, 18(3), 231-247. doi:10.3727/154427213X13736372325789
Boiral, O., & Henri, J. F. (2012). Modelling the impact of ISO 14001 on environmental performance:
A comparative approach. Journal of Environmental Management, 99, 84-97.
doi:10.1016/j.jenvman.2012.01.001
Brochado, A., & Rodrigues, H. (2016). Strategic partnerships and hotel profitability in the UK.
Journal of Hospitality Marketing & Management, 25(7), 897-914.
doi:10.1080/19368623.2016.1128413
Chen, Y. S., Tang, C. H., & Han, H. (2015). Green certification, environmental performance, and
customer satisfaction. International Journal of Hospitality Management, 45, 56-65.
doi:10.1016/j.ijhm.2014.12.003
da Silva, M. T., & Mendes, J. (2013). Green certification and its impact on hotel bookings in Brazil.
Journal of Sustainable Tourism, 21(7), 1032-1048. doi:10.1080/09669582.2012.750327
George, R., & Booyens, I. (2014). The profitability of luxury safari lodges in Africa. Tourism
Management, 40, 344-355. doi:10.1016/j.tourman.2013.10.004
Green Hotelier. (2017). The business case for green certification. Green Hotelier. Retrieved from
Han, H., Hsu, L. T. J., & Lee, J. S. (2009). Empirical investigation of the roles of attitudes toward
green behaviors, overall image, gender, and age in hotel customers' eco-friendly decisionmaking process. International Journal of Hospitality Management, 28(4), 519-528.
doi:10.1016/j.ijhm.2009.02.004
Han, H., Hsu, L. T. J., & Lee, J. S. (2015). Empirical investigation of the roles of attitudes toward
green behaviors, overall image, gender, and age in hotel customers' eco-friendly decisionmaking process. International Journal of Hospitality Management, 28(4), 519-528.
doi:10.1016/j.ijhm.2009.02.004
Harrington, R. J., & Ottenbacher, M. C. (2014). The cultural heritage influence on hotel
marketability in the UK. Journal of Travel & Tourism Marketing, 31(4), 493-508.
doi:10.1080/10548408.2014.883953
Ivanov, S., & Webster, C. (2013). The impact of high occupancy rates on hotel profitability. Tourism
Economics, 19(4), 821-836. doi:10.5367/te.2013.0216
Jones, P., & Chen, S. (2015). Branding and online presence in the US hotel industry. Journal of
Vacation Marketing, 21(2), 145-158. doi:10.1177/1356766715569540
Mensah, I., & Blankson, E. (2014). Sustainability practices among hotels in the UK. Journal of
Sustainable Tourism, 22(2), 255-277. doi:10.1080/09669582.2013.835409
Meyer, J. W., & Rowan, B. (1977). Institutionalized organizations: Formal structure as myth and
ceremony. American Journal of Sociology, 83(2), 340-363. doi:10.1086/226550
Nishitani, K., Kaneko, S., Fujii, H., & Komatsu, S. (2012). Are firms’ voluntary environmental
management activities beneficial for the environment and business? An empirical study
focusing on Japanese firms. Journal of Environmental Management, 105, 121-130.
doi:10.1016/j.jenvman.2012.03.042
Nishiyama, T., & Shimizu, T. (2013). Efficiency and innovation in Japanese hotels. Journal of
Hospitality & Tourism Research, 37(3), 360-379. doi:10.1177/1096348012436379
Okumus, F., & Karamustafa, K. (2012). Tradition meets technology in Japanese hotels. Tourism
Analysis, 17(2), 259-272. doi:10.3727/108354212X13364296326975
Rahman, I., Reynolds, D., & Svaren, S. (2012). How “green” are North American hotels? An
exploration of low-cost adoption practices. International Journal of Hospitality Management,
(3), 720-727. doi:10.1016/j.ijhm.2011.09.008
Rahman, I., Reynolds, D., & Svaren, S. (2012). How “green” are North American hotels? An
exploration of low-cost adoption practices. International Journal of Hospitality Management,
(3), 720-727. doi:10.1016/j.ijhm.2011.09.008
Rogerson, C. M., & Sims, S. R. (2012). Marketability of African safari experiences. African Journal
of Hospitality, Tourism and Leisure, 2(1), 45-59. doi:10.1080/09669582.2012.750327
Rogerson, C. M., & Sims, S. R. (2012). The greening of urban hotels in South Africa: Evidence from
Gauteng. Urban Forum, 23(3), 391-407. doi:10.1007/s12132-012-9163-3
Sigala, M., Gretzel, U., & Murphy, J. (2014). Social media marketing in the US hospitality industry.
International Journal of Hospitality Management, 37, 1-8. doi:10.1016/j.ijhm.2013.10.009
Souza, M. J., Lima, M. A., & Ferreira, L. M. (2016). Eco-labeling as a market differentiator for
tourism enterprises. Journal of Cleaner Production, 137, 1492-1503.
doi:10.1016/j.jclepro.2016.07.188
Spence, M. (1973). Job market signaling. Quarterly Journal of Economics, 87(3), 355-374.
doi:10.2307/1882010
Verma, S., & Chandra, B. (2018). Sustainability practices and hotel profitability: Empirical evidence
from India. Journal of Cleaner Production, 199, 222-231. doi:10.1016/j.jclepro.2018.07.179
Wang, D., Liang, L., & Law, R. (2015). Dynamic pricing and revenue management in US hotels.
Journal of Revenue and Pricing Management, 14(3), 210-224. doi:10.1057/rpm.2014.27
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Jobin Kaithlin
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
